Tesla (TSLA) has reportedly informed staff that it’ll pause manufacturing at Gigafactory Texas, the place it produces Mannequin Y and Cybertruck automobiles, for the second time in as many months.
In late Might, Tesla prolonged a protracted weekend right into a week-long manufacturing shutdown at Gigafactory Texas.
The transfer got here amid decrease demand and stock buildups.
We reported earlier in the present day that Tesla has to hire out empty parking heaps across the US to make use of as overflow heaps for its further stock.
Now, Tesla informed staff that it’s once more shutting down Mannequin Y and Cybertruck manufacturing at Gigafactory Texas over the primary week of July.
With the Fourth of July being a Friday this yr, it was going to be a protracted weekend, however Tesla once more determined to increase the manufacturing shutdown from June thirtieth via the next week, based on staff speaking to Enterprise Insider.
Tesla claimed that it’ll allow the corporate to carry out “upkeep and enhancements on manufacturing traces.” Staff are being supplied paid break day or to come back in for coaching.
As now we have beforehand reported, Tesla has been throttling down manufacturing of the Cybertruck in 2025 as gross sales are presently monitoring about half of final yr.
That’s regardless of having launched cheaper variations of the electrical truck, getting access to the federal tax credit score for the Cybertruck, and providing greater reductions and incentives.
Tesla reported a 13% lower in deliveries in Q1 2025 in comparison with the identical interval final yr, which the automaker attributed to its Mannequin Y design changeover decreasing manufacturing.
Nevertheless, Tesla’s deliveries are presently monitoring to be down much more within the second quarter in comparison with final yr, regardless of Tesla having ramped up manufacturing.
Electrek’s Take
What’s going to be the excuse this quarter? As I reported earlier in the present day, Tesla is presently monitoring to ship 355,000-360,000 items in Q2, which might be down 19-20% in comparison with 2024.
It will be an excellent steeper decline even with the brand new Mannequin Y.
It clearly wasn’t the issue.
The automaker had already diminished its manufacturing capability at most factories in 2024, when it ran at about 60% capability on account of decrease demand.
Now, Tesla is stopping manufacturing of its best-selling Mannequin Y with the brand new design twice in two months?
This isn’t wanting good.
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